2006 New York Code - Bonds Of The Authority.

 
    §  1226-l.  Bonds  of  the  authority. 1. The authority shall have the
  power and is hereby authorized from time to time to issue  bonds,  notes
  or  other  obligations  to  pay the cost of any project or for any other
  corporate purpose, including the establishment of reserves to secure the
  bonds, the payment of principal of, premium, if any, and interest on the
  bonds and the payment of incidental expenses  in  connection  therewith.
  The aggregate principal amount of such bonds, notes or other obligations
  shall  not  exceed one hundred million dollars ($100,000,000), excluding
  bonds, notes or other obligations issued to refund  or  otherwise  repay
  bonds,  notes or other obligations theretofore issued for such purposes;
  provided, however, that upon any such refunding or repayment  the  total
  aggregate   principal  amount  of  outstanding  bonds,  notes  or  other
  obligations  may  be  greater   than   one   hundred   million   dollars
  ($100,000,000)  only  if the present value of the aggregate debt service
  of the refunding or repayment bonds, notes or other  obligations  to  be
  issued  shall not exceed the present value of the aggregate debt service
  of the bonds, notes or other obligations so to be  refunded  or  repaid.
  For purposes hereof, the present values of the aggregate debt service of
  the  refunding or repayment bonds, notes or other obligations and of the
  aggregate debt service of the  bonds,  notes  or  other  obligations  so
  refunded  or  repaid,  shall  be  calculated  by utilizing the effective
  interest rate of the  refunding  or  repayment  bonds,  notes  or  other
  obligations,  which  shall  be  that  rate  arrived  at  by doubling the
  semi-annual  interest  rate  (compounded  semi-annually)  necessary   to
  discount  the debt service payments on the refunding or repayment bonds,
  notes or other obligations from the payment dates thereof to the date of
  issue of the refunding or repayment bonds, notes  or  other  obligations
  and  to  the  price bid including estimated accrued interest or proceeds
  received by the authority including estimated accrued interest from  the
  sale thereof. The authority shall have power and is hereby authorized to
  enter  into  such  agreements  and  perform such acts as may be required
  under any applicable federal legislation to secure a  federal  guarantee
  of any bonds.
    2.  The authority shall have power from time to time to renew bonds or
  to issue renewal bonds for such purpose, to issue bonds  to  pay  bonds,
  and,  whenever  it  deems refunding expedient, to refund any bond by the
  issuance of new bonds, whether the bonds to be refunded have or have not
  matured, and may issue bonds partly to refund bonds then outstanding and
  partly for any other corporate purpose of the  authority.  Bonds  (other
  than  notes  or  other  evidence  of  indebtedness) issued for refunding
  purposes, which have a final maturity date longer than the  maturity  of
  the  bonds  being  refunded,  shall  be  approved by a resolution of the
  county legislature adopted by a majority vote and approved by the county
  executive. Bonds issued for refunding purposes shall  be  sold  and  the
  proceeds  applied to the purchase, redemption or payment of the bonds or
  notes to be refunded.
    3. Bonds issued by the authority may be general obligations secured by
  the faith and credit of the authority  or  may  be  special  obligations
  payable  solely  out  of  particular  revenues or other moneys as may be
  designated in the proceedings of the authority  under  which  the  bonds
  shall  be  authorized  to  be issued, subject as to priority only to any
  agreements with the holders of outstanding bonds pledging any particular
  property, revenues or moneys. The authority may  also  enter  into  loan
  agreements, lines of credit and other security agreements and obtain for
  or  on  its  behalf  letters  of  credit, insurance, guarantees or other
  credit enhancements to the extent now or hereafter  available,  in  each
  case  for  securing  its bonds or to provide direct payment of any costs
  which the authority is authorized to pay.
    4. Bonds shall be authorized by resolution of  the  authority,  be  in
  such  denominations  and bear such date or dates and mature at such time
  or times, as such  resolution  may  provide,  provided  that  bonds  and
  renewals  thereof  shall  mature  within  forty  years  from the date of
  original issuance of any such bonds.
    Bonds  shall  be subject to such terms of redemption, bear interest at
  such rate or rates, be payable at such times, be in  such  form,  either
  coupon or registered, carry such registration privileges, be executed in
  such  manner,  be  payable  in  such  medium of payment at such place or
  places, and be subject to such terms and conditions as  such  resolution
  may  provide.  Notwithstanding  any other provision of law, the bonds of
  the authority issued pursuant to this  section  shall  be  sold  to  the
  bidder offering the lowest true interest cost, taking into consideration
  any  premium  or discount not less than four nor more that fifteen days,
  Sundays excepted, after a notice of such  sale  has  been  published  at
  least  once  in a newspaper of general circulation in the area served by
  the authority, which shall state the terms of the sale. The terms of the
  sale may not change unless notice of such change is  published  in  such
  newspaper at least one day prior to the date of the sale as set forth in
  the original notice of sale. Advertisements shall contain a provision to
  the  effect that the authority, in its discretion, may reject any or all
  bids made in pursuance of such advertisements, and in the event of  such
  rejection,  the authority is authorized to negotiate a private or public
  sale or readvertise for bids in the form and manner above  described  as
  many  times as, in its judgment, may be necessary to effect satisfactory
  sale.
    Notwithstanding the provisions of the preceding paragraph, whenever in
  the judgment of the authority the interests of  the  authority  will  be
  served   thereby,   the   members  of  the  authority,  on  the  written
  recommendation of the chairperson, may authorize the sale of such  bonds
  at  private  or  public  sale  on  a  negotiated  basis  or  on either a
  competitive or negotiated basis.  The  authority  shall  set  guidelines
  governing  the terms and conditions of any such private or public sales.
  The private or public bond sale guidelines set by  the  authority  shall
  include,  but  not be limited to, a requirement that where the interests
  of the authority will be served by a private or public  sale  of  bonds,
  the  authority shall select underwriters for each private or public bond
  sale  conducted  pursuant  to  a  request  for  proposal   process   and
  consideration  of  proposals  from  qualified  underwriters  taking into
  account, among  other  things,  qualifications  of  underwriters  as  to
  experience,  their  ability to structure and sell authority bond issues,
  anticipated  costs  to  the  authority,  the  prior  experience  of  the
  authority  with  the  firm,  if  any,  the capitalization of such firms,
  participation of qualified minority and women-owned business  enterprise
  firms  in such private or public sales of bonds of the authority and the
  experience and  ability  of  firms  under  consideration  to  work  with
  minority  and  women-owned  business  enterprises  so  as to promote and
  assist participation by such enterprises.
    The authority shall have the power from time to  time  to  amend  such
  private  bond  sale guidelines in accordance with the provisions of this
  subdivision.
    No private or  public  bond  sale  on  a  negotiated  basis  shall  be
  conducted   by  the  authority  without  prior  approval  of  the  state
  comptroller and the county comptroller.  The  authority  shall  annually
  prepare  and  approve a bond sale report which shall include the private
  or public  bond  sale  guidelines  as  specified  in  this  subdivision,
  amendments to such guidelines since the last private or public bond sale
  report,  an  explanation of the bond sale guidelines and amendments, and
  the results of any sale of bonds conducted during the fiscal year.  Such
  bond sale report may be a part of  any  other  annual  report  that  the
  authority is required to make.
    The  authority shall annually submit its bond sale report to the state
  comptroller and the county comptroller and copies thereof to the  senate
  finance committee and the assembly ways and means committee.
    The  authority  shall  make available to the public copies of its bond
  sale report upon reasonable request thereof.
    Nothing contained in this subdivision shall be deemed to alter, affect
  the validity of, modify the terms of or impair any contract or agreement
  made or entered into in violation of, or without  compliance  with,  the
  provisions of this subdivision.
    5.  Any  resolution  or  resolutions authorizing bonds or any issue of
  bonds may contain provisions which may be a part of  the  contract  with
  the holders of the bonds thereby authorized as to:
    (a)  pledging all or part of the revenues, other monies or property of
  the authority to secure the payment  of  the  bonds,  or  any  costs  of
  issuance  thereof,  including but not limited to any contracts, earnings
  or proceeds of any grant to the authority received from any  private  or
  public  source  subject to such agreements with bond holders as may then
  exist;
    (b) the setting aside of reserves and the creation  of  sinking  funds
  and the regulation and disposition thereof;
    (c)  limitations on the purpose to which the proceeds from the sale of
  bonds may be applied;
    (d) the rates, rents, fees and other charges to be fixed and collected
  by the authority and the amount to be raised in each  year  thereby  and
  the use and disposition of revenues;
    (e) limitations on the right of the authority to restrict and regulate
  the  use  of  the project or part thereof in connection with which bonds
  are issued;
    (f) limitations on the issuance of additional bonds,  the  terms  upon
  which  additional  bonds  may be issued and secured and the refunding of
  outstanding or other bonds;
    (g) the procedure, if any, by which the terms  of  any  contract  with
  bond  holders  may  be  amended  or  abrogated,  the amount of bonds the
  holders of which must consent thereto, and  the  manner  in  which  such
  consent may be given;
    (h)  the  creation  of special funds into which any revenues or monies
  may be deposited;
    (i) the terms and provisions of any trust, mortgage, deed or indenture
  securing the bonds under which the bond may be issued;
    (j) vesting in a trustee or trustees such properties,  rights,  powers
  and duties in trust as the authority may determine which may include any
  or all of the rights, powers and duties of the trustees appointed by the
  bond holders to appoint a trustee pursuant to this title or limiting the
  rights, duties and powers of such trustee;
    (k)  defining  the  acts  or  omissions  to act which may constitute a
  default in the obligations and duties  of  the  authority  to  the  bond
  holders and providing for the rights and remedies of the bond holders in
  the event of such default, including as a matter of right appointment of
  a  receiver,  provided, however, that such rights and remedies shall not
  be inconsistent with the general laws of the state and other  provisions
  of this title;
    (l)  limitations  on  the  power of the authority to sell or otherwise
  dispose of any project or any part thereof;
    (m) limitations on the amount of  revenues  and  other  monies  to  be
  expended   for  operating,  administrative  or  other  expenses  of  the
  authority;
    (n) the payment of the proceeds of bonds, revenues and other monies to
  a  trustee  or  other  depository,  and  for  the method of disbursement
  thereof with such safeguards  and  restrictions  as  the  authority  may
  determine; and
    (o)  any other matters of like or different character which in any way
  affect the security or  protection  of  the  bonds  or  the  rights  and
  remedies of bondholders.
    6.  In  addition  to the powers herein conferred upon the authority to
  secure its bonds, the authority shall have power in connection with  the
  issuance  of  bonds  to  adopt  resolutions  and  enter  into such trust
  indentures, agreements or other instruments as the  authority  may  deem
  necessary,  convenient or desirable concerning the use or disposition of
  its revenues or other monies or property, including  the  mortgaging  of
  any  property  and  the  entrusting,  pledging  or creation of any other
  security interest in any such revenues, monies or property and the doing
  of any act, including refraining from doing any act which the  authority
  would  have  the  right  to do in the absence of such resolutions, trust
  indentures, agreements or other instruments.  The authority  shall  have
  power   to   enter  into  amendments  of  any  such  resolutions,  trust
  indentures, agreements or other instruments. The provisions of any  such
  resolutions,  trust  indentures,  agreements or other instruments may be
  made a part of the contract with the holders of bonds of the authority.
    7. Any provision of  the  uniform  commercial  code  to  the  contrary
  notwithstanding,  any  pledge of or other security interest in revenues,
  monies, accounts, contract rights, general intangibles or other personal
  property made or created by the authority shall be  valid,  binding  and
  perfected  from  the  time  when  such  pledge is made or other security
  interest attaches without any physical delivery  of  the  collateral  or
  further  act, and the lien of any such pledge or other security interest
  shall be valid, binding and perfected against all parties having  claims
  of  any  kind  in  tort,  contract  or  otherwise  against the authority
  irrespective of whether or not such  parties  have  notice  thereof.  No
  instrument  by  which  such a pledge or security interest is created nor
  any financing statement need be recorded or filed.
    8. Whether or not the bonds are of such form and character  as  to  be
  negotiable  instruments  under the terms of the uniform commercial code,
  the bonds are hereby made negotiable instruments within the  meaning  of
  and for all the purposes of the uniform commercial code, subject only to
  the provisions of the bonds for registration.
    9.  Neither  the members of the authority nor any person executing its
  bonds shall be liable personally on its  bonds  or  be  subject  to  any
  personal liability or accountability by reason of the issuance thereof.
    10. Subject to such agreements with bondholders as may then exist, the
  authority  shall  have  power  out  of  any  funds available therefor to
  purchase bonds of the authority, which shall thereupon be cancelled,  at
  a  price  not  exceeding  (a)  if  the  bonds  are  then redeemable, the
  redemption price then applicable  plus  accrued  interest  to  the  next
  interest  payment date, or (b) if the bonds are not then redeemable, the
  redemption price applicable on the first date after such  purchase  upon
  which  the  bonds  become subject to redemption plus accrued interest to
  the next interest payment date. Bonds so purchased  shall  thereupon  be
  cancelled.